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Role of Marketing in Banking

Role of Marketing in Banking

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Published by adillawa

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Published by: adillawa on Jan 29, 2010
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07/15/2013

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ROLE OF MARKETING IN BANKING
Before starting our discussion it is necessary that we should know that what isthe definition of the bank and the marketing than we can easily understand thatrole the marketing in the banking sector.
BANK, ACCORDING TO THE HARBURT HURT
“A banker is one who in the ordinary course of businesshonors cheques drawn upon him by persons for whom herecieves money on current account”
BANK, ACCORDING TO THE HARTLEY WITHERS
 A manufacurer of credit and a machine for facilitatingexchanges
Banks play a vital role in every country’s economy.Because they daily involve in accuring funds andproviding loan to the individual persons, industry,corporate sector etc. Banks provide several types of services to their clients.We all know well that now the era has changed andknow people want innovation in every thing so that is why mostly banks areusing the marketing approach for providing better services to their clients.
MARKETING DEFINED
The aniticipation, management, and satisfaction of demand through the exchange process
The marketing management philosophy that holds achieving organizationalgoals depends on knowing the needs and wants of target market and deliveringthe desired satisfactions better than competitiors.Now it is very crystal and clear that banking and marketing are two differentterminologies.
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ROLE OF MARKETING IN BANKING
Because banks provide the services so that is whybank use the service-marketing tool in the bankingindustry. Like this large numbers of businessorganizations offer services airlines, hotels,insurance, consulting firms, medical and lawpractices, entertainment companies, real estate firms,retailers & others so they also use service marketing.The banking industry faces some exceptional challenges when it comes tomarketing. The public tends to view banks and other financial institutions withsuspicion, or they take them for granted. In either case the ability to positivelyimpact the public's perceptions of banks requires creative and forthrightmarketing.Show me a successful business and I'll show you a marketing success story.Those companies who had the foresight to dominate their industries from thestart enjoy the greatest perk afforded to any marketing campaign, said perk being"Name-branding". To this day we make "Xerox" copies, not "photo" copies. Wereach for a "Kleenex" as opposed to a tissue. Regardless of what brand of popwe have in our refrigerator we offer up a "Coke". When our drains are cloggedwe discuss "Roto-rooting" them. Once your product or service becomessynonymous with a concept you are on your way to guaranteed growth! It isworth noting that the companies I've mentioned continue to market, but they arein the luxury position of only having to purchase "maintenance" marketing. Whilecosting considerably less than their previous dominant posture, it keeps them inthe public mind. Does anyone with young children not have McDonald's menucommitted to memory? Yet McDonald's continues to run periodic campaigns for one reason - the competition is aggressively inviting you into their driveway.McDonald's is also a great example of specific target marketing. Whenever they
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ROLE OF MARKETING IN BANKING
attempted to reach a more mature demographic through the introduction of "adult" fare, the campaigns fell flat. So they continue to market to there provendemographic, namely kids.Hold on. We're talking about marketing banks. To becertain we are not selling hamburgers. Banks mustfocus on several things when marketing. They need toinstill confidence. They need to image themselves in amemorable way. They need to provide specificreasons for the public to move from their presentprovider to their institution. This can only beaccomplished when you reach beyond the obvious and focus on the criteria thatdistinguish you from the competition. We all know that banks provide checkingaccounts, make loans, provide safety deposit boxes, etc. But at some point intime there was a banking group who decided to open on Saturdays. Someoneinitiated the concept of free checking, 24 hour banking, and adding services suchas financial planning. And these trends were eventually mirrored by thecompetition out of necessity.What are your strengths? What sets you apart from the competition? Your people? Your services? Your location(s)? All the above? I worked with apharmacy several years ago that was located in a town saturated withpharmacies. My advice to them was to ignore the obvious, prescription filling, andfocus their marketing on their unique features. They were the only pharmacy intown with a certain brand of vitamins and herbals, with a 5-minutecholesterol/blood sugar test, and with prescription flagging to notify their clients of renewal dates. By focusing their marketing on these unique services they gavethe public specific reasons to shop with them. Prescription refills followednaturally. Take the time to determine what your unique features are. Brainstormwith ALL of your employees. Who knows? There might be an innovative
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